Adjusted tax amendment will exempt more people

1.7 million people living in Shenzhen are exempted from this year’s income tax. An amendment was issued that raised the monthly tax threshold from 2,000 yuan up to 3,500 yuan.

This adjusted threshold was 500 yuan higher than the original amount that was proposed during the amendment of the draft that was submitted to the National People’s Congress. Tax experts said that residents that have a monthly income after the pensions, insurance and fund payments that falls in the range of 8,000 to 12,500 yuan bracket are the ones that will benefit the most in the tax exempt of 480 yuan a month.

When the tax threshold is increased do thus the break even point from the previous 19,000 yuan a month to 38,600 yuan a month. this means that residents earning am monthly income from 2,000 yuan up to 38,600 yuan can benefit from personal tax reductions. Residents earning more than 38,600 yuan will have to pay more taxes.

Experts are saying that the amendment came just in time since it will reduce tax burden for low income residents and workers who are living in Shenzhen, since a large population are found working in the Longgang and Bao’an Districts have a monthly income between 2,000 to 3,500 yuan.

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